The Volcker rule: A complex compliance challenge (Grant Thornton)

March 2014

KEYWORDS: Dodd-Frank Act, Volcker Rule, proprietary trading, banks, regulatory reform, Hedge Fund Regulation


Nichole Jordan, Jack Katz, Steven P. Goldberg, Rona Pocker

  • Grant Thornton

After four years of fervent public debate and intense regulatory deliberation, Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), known as the Volcker rule (the rule), was approved by all five of the required federal agencies on Dec. 10, 20131. The rule — modified from a proposal published in late 2011 — restricts a banking entity’s trading activities and defines what is a permissible investment for a banking entity. Coupled with the compliance challenges and costs imposed by other parts of the Dodd-Frank Act, the rule will create a significant hurdle for midsize and large banking entities as they strive to regain historical levels of profitability.

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